Administrators for a collapsed fit-out specialist have halted debt collection efforts.
- The decision follows months of pursuit with limited success in recovering debts.
- Legal advice deemed further collection efforts as not cost-effective.
- The company had £1.87m in book debts but will not pursue more collections.
- More than 50 former employees were not consulted on redundancy and won their tribunal case.
The cessation of debt recovery efforts by administrators for the collapsed fit-out specialist, Twenty 1 Construction, comes after several fruitless months. The administrators, led by Grant Thornton, concluded their pursuit of remaining debts, advised by legal firm Irwin Mitchell, as it proved financially unsustainable. This decision was made despite initially recovering £1.87m of book debts and retentions.
Grant Thornton was appointed to manage the administration process in March 2022. During this time, the administrators confirmed receiving £20.5m worth of claims from unsecured creditors, including subcontractors and suppliers. However, due to a lack of available funds, the supply chain will not receive any shares from the remaining assets.
In addition, over 50 former employees of Twenty 1 Construction claimed they were not properly consulted prior to their redundancy. These employees were successful in their case at the Employment Tribunal in March, although as unsecured creditors, they will not receive their expected payout of 90 days’ pay. Despite these challenges, a dividend of £182,495 was distributed to 64 former employees in April.
Established in 2012, Twenty 1 Construction has completed noteworthy projects in prestigious London areas such as Aldwych, Grosvenor Street, and Farringdon. The firm also fitted out floors of Broadgate Tower and collaborated with companies like Mace and WSP at 110 Bishopsgate. At its peak, the firm reported a turnover of £68.6m and a pre-tax profit of £692,000 for the year ending 31 December 2020.
The suspension of debt recovery highlights the financial strain and legal challenges faced by Twenty 1 Construction.
